Fininvest Group Financial statements 2016

PRESS RELEASE

FININVEST GROUP – FINANCIAL STATEMENTS 2016

CONSOLIDATED REVENUES: EUR 5,050.8 MILLION (+6.6%)

OPERATING RESULT BEFORE NON-RECURRING ITEMS: EUR 147.7 MILLION

CONSOLIDATED OPERATING PROFIT: EUR -188.7 MILLION

NET RESULT BEFORE NON-RECURRING ITEMS: EUR 46.9 MILLION

CONSOLIDATED NET RESULT: EUR -120.2 MILLION

INVESTMENTS: EUR 1,053.8 MILLION

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The Shareholders' Meeting of Fininvest SpA held today under the chairmanship of Marina Berlusconi approved the financial statements of the parent company and examined the consolidated financial statements for the year that ended December 31, 2016.

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The 2016 financial results of the Fininvest Group must be viewed in the context of a special operation and the significant extraordinary factors connected to it, along with important strategic choices undertaken during the year. On the one hand, Group economic and financial performance was heavily conditioned by the extremely serious damage caused by Vivendi's failure to comply with binding agreements it made with Mediaset. On the other hand, the Group realized investments of wide-ranging strategic importance, such as those of Mondadori in Rizzoli Libri and Banzai Media and Mediaset in the radio sector, in conjunction with parent company Fininvest defined the principles to complete the sale of Milan A.C., which was finalized this financial year. It also should be taken into consideration that, in a continuing unstable macroeconomic framework and increasingly competitive market context, the Group achieved a positive consolidated operating result net of non-recurring items of nearly EUR 150 million and a profit of approximately EUR 50 million.

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2016 FININVEST GROUP CONSOLIDATED FINANCIAL STATEMENTS

Following are the principal results for the 2016 financial year*:

Consolidated revenues of the Fininvest Group for the year 2016 amounted to 5,050.8 million Euros, up 6.6% compared to 4,736.3 million in 2015.

EBITDA is equal to EUR 1,217.5 million, compared to EUR 1,402.9 million in the previous year.

Group operating profit was positive by Eur 147.7 million, net of non-recurring charges. This is mainly due to writedowns and allocation provisions following the impairment processes in Mediaset, which were due to the progressive decline in  pay-TV area performance and worsened by the impact on business operations caused by Vivendi’s failure to honor its contractual agreement. The impact of non-recurring items totaled EUR 336.4 million, representing a total loss of EUR 188.7 million (+225.6 million in 2015).

The net result excluding all non-recurring costs and Milan A.C.’s losses in the second half of 2016 (an amount substantially recognized by the purchaser at the time of sale as a component of the price) was positive for EUR 46.9 million.

Considering the impacts of non-recurring items and the EUR 95 million charge connected to the full year results of Milan A.C. (whose sale in 2017 will show a consolidated gain of approximately EUR 600 million), the Group’s net result recorded a loss of EUR 120.2 million (in the face of what was essentially a breakeven in 2015).

The net financial position of the Fininvest Group at December 31, 2016 shows a debt of EUR 1,279.9 million compared with EUR 977.6 million at 31 December 2015.

Group investments total EUR 1,053.8 million (1,012.7 million in 2015) and include investments of EUR 312.9 million in shareholding, financial instruments and business networking agreements including Rizzoli Libri, Banzai Media and ex-Finelco radio activities.

Total net consolidated total shareholders' equity at 31 December 2016 amounted to EUR 4,268.7 million.

* Group Milan business was classified as "discontinued operations” as per IFRS5 definitions.

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2016 FININVEST S.P.A. FINANCIAL STATEMENT

The statutory net result of the parent company Fininvest S.p.A. for the 2016 financial year showed a profit of EUR 3.6 million (compared with profit of 221.4 million in the 2015 financial year, benefiting from a capital gain of EUR 272 million realized by the sale of 7.8% of Mediaset’s share capital).